DCIT, Hyderabad V. M/s Surana Telecom Ltd., Secunderabad

ITA 691/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9805 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMLAN TRIPATHY
• Assessee Lawyers: K C DEVADAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.691/HYD/10 : ASSESSMENT YEAR 2006-07 DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(2), HYDERABAD V/S. M/S. SURANA TELECOM LTD., HYDERABAD ( PAN AADCS 1823 R ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMLAN TRIPATHY RESPONDENT BY : SHRI K.C.DEVADAS O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 20 06-07 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME -TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- 1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON FA CTS AND IN LAW. 2. THE CIT(A) ERRED IN NOT APPRECIATING THE LEGISLA TIVE INTENTION IN INSERTING THE PROVISIONS OF SECTION 145A. THE LEARN ED CIT(A) SHOULD HAVE SUSTAINED THE ADDITION ON ACCOUNT OF EX CISE DUTY ON CLOSING STOCK AS THE PROVISION CREATED TOWARDS EXCI SE DUTY PAYABLE ON CLOSING STOCK OF FINISHED GOODS IS ONLY A CONTINGENT LIABILITY AND NOT AN ASCERTAINED LIABILITY AS ON 31 ST MARCH OF THE ACCOUNTING YEAR. ITA NO.691./HYD/10 M/S. SURANA TELECOM LTD., HYDERABAD 2 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE SU BMITTED THAT THE ISSUE OF ADDITION ON ACCOUNT OF EXCISE DUTY ON CL OSING STOCK IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSM ENT YEAR, VIZ. 2004-05 IN ITA NO.380/HYD/2008, WHEREIN IDENTICAL ISSU E WAS DECIDED IN FAVOUR OF THE ASSESSEE AND THE ADDITION CONFIRMED BY TH E CIT(A) FOR THAT YEAR WAS DELETED BY THE TRIBUNAL. THE LEARNED DEPARTMENTA L REPRESENTATIVE, ON THE OTHER HAND, RELIED ON THE ORDER OF THE ASSESSING OF FICER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PE RUSED THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLI ER ASSESSMENT YEAR, VIZ. 2004-05. WE FIND THAT ON IDENTICAL FACTS, THE ISSU E OF ADDITION ON ACCOUNT OF EXCISE DUTY ON CLOSING STOCK WAS DECIDED IN FAVOUR OF THE ASSESSEE AND THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY T HE CIT(A) FOR THAT YEAR, WAS DELETED BY THE TRIBUNAL. WE, BEING IN AGR EEMENT WITH THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEA R 2004-05 CITED SUPRA, DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND ACCORD INGLY THE ORDER OF THE CIT(A) IS CONFIRMED AND THE GROUNDS OF APPEAL OF T HE REVENUE ARE REJECTED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 18.2.2011 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 18TH FEBRUARY, 2011 ITA NO.691./HYD/10 M/S. SURANA TELECOM LTD., HYDERABAD 3 COPY FORWARDED TO: 1. M/S. SURANA TELECOM LTD., 2 ND FLOOR, SURYA TOWERS, S.P. ROAD, HYDERABAD 2. DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(2), HYDERA BAD 3. COMMISSIONER OF INCOME-TAX(APPEALS) IV, HYDERABAD 4. COMMISSIONER OF INCOME TAX III, HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S